Bitcoin’s recent slide under $100,000, its lowest level since June, has rattled some investors, but prominent voices in the industry remain upbeat about the long-term outlook.
Analysts see retail capitulation
Bitwise chief investment officer Matt Hougan described the downturn as peak retail capitulation rather than the onset of a deeper collapse. Hougan stated:
“Crypto retail is in max desperation. We’ve seen leverage blowouts… the market for sort of crypto native retail is just more depressed than I’ve ever seen it.”
He believes the sell-off is nearing exhaustion, and once retail exits, institutional demand could push prices higher.
Hougan added that Bitcoin could “easily end the year at new all-time highs,” projecting a range of $125,000 to $130,000.
Hayes points to stealth QE
Former BitMEX CEO Arthur Hayes has argued that rising US government debt will force the Federal Reserve to expand its balance sheet through what he calls “stealth QE”—injecting liquidity via the Standing Repo Facility to support Treasury financing. Hayes wrote:
“If the Fed’s balance sheet grows, that is dollar liquidity positive, and ultimately pumps the price of Bitcoin.”
He expects that this cycle of government borrowing and quiet liquidity creation will reignite the bitcoin bull market.
Bear market territory confirmed
Market commentators, including The Kobeissi Letter, noted that Bitcoin has now entered bear market territory after falling more than 20% from its October 6 high.
Some traders warn that prices could drop further, potentially retesting the $92,000 level if support fails.
